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Last week we made a contribution to the conference "Social innovation in micro-savings" organised by the European Financial Inclusion Network (EFIN). Can micro-savings help reduce poverty? What are the expectations that civil society organisations have in relation to micro-savings and social inclusion? What is the role of banks? And finally what is the role of the EU? These were the questions that were debated in the panel to which we participated, together with representatives of the European Savings Bank Group, the Bank of France, Levi Strauss Foundation and EFIN.

Michel Mercadié, Member of the Management Committee, remarked that it is just an illusion to think that the poor can overcome poverty alone, by changing his or her behaviour in relation to money. Poverty is linked with economic paradigms where poor people are the first victims. However, micro-savings are one of the tools that can be effective in the fight against social exclusion and in particular financial exclusion, provided that they are integrated with more comprehensive support measures tailored to individuals such as in relation to promoting access to housing, health services, and the labour market. To this regard it is important to highlight the essential role played by non profit organisations and social services of general interest. Financing of these support services is a responsibility of public authorities and not private foundations or public private partnerships.

Social Platform welcomes the proposal for a directive on basic payment accounts as it marks the first step of a necessary legislative initiative to guarantee financial inclusion. Ensuring access for all to fair savings should be the second step (to know more read our position paper on financial inclusion).

Banks have an important responsibility as well, because they are partly responsible both for the increase of over-indebtedness and the exclusion of less profitable clients from access to credit. We should reflect upon an articulation of corporate social responsibility tailored to banks, which would include an obligation on banks to guarantee universal access to basic payment accounts. For these reasons it is very useful to develop partnerships between financial institutions and civil society organisations which have direct access to people in need. The study presented during this conference has clearly shown that these people do not trust banks and do not understand how they function.

Ironically, since the EU is the opposite of the necessary local support, the role of the EU is essential. First of all, it should not be an obstacle to initiatives aimed at social inclusion by triggering more and more competition in welfare services. Secondly, it has a role to play by supporting European projects where EU citizens exchange good practices in this field. Thirdly, due to its legislative role, it should gradually harmonize upwards its social dimension.